Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 12, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | TOWERSTREAM CORP | |
Entity Central Index Key | 1,349,437 | |
Trading Symbol | twer | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 4,549,006 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 9,977,495 | $ 15,116,531 |
Accounts receivable, net | 410,560 | 308,551 |
Prepaid expenses and other current assets | 756,240 | 474,029 |
Current assets of discontinued operations | 238,050 | 1,248,569 |
Current assets held for sale | 5,315,107 | |
Total Current Assets | 11,382,345 | 22,462,787 |
Property and equipment, net | 18,545,590 | 21,235,384 |
Intangible assets, net | 4,488,256 | 1,273,030 |
Goodwill | 1,674,281 | 1,674,281 |
Other assets | 388,930 | 384,357 |
Total Assets | 36,479,402 | 47,029,839 |
Current Liabilities | ||
Accounts payable | 334,523 | 877,134 |
Accrued expenses | 1,321,816 | 1,629,218 |
Deferred revenues | 1,144,970 | 1,486,754 |
Current | 980,389 | 992,690 |
Current liabilities of discontinued operations | 3,007,180 | 3,907,368 |
Deferred rent | 62,883 | 63,012 |
Total Current Liabilities | 6,851,761 | 8,956,176 |
Long-Term Liabilities | ||
Long-term debt, net of debt discount and deferred financing costs of $2,868,708 and $3,744,941, respectively | 34,627,096 | 33,003,962 |
Long-term | 453,194 | 932,826 |
Other | 1,019,078 | 1,591,188 |
Total Long-Term Liabilities | 36,099,368 | 35,527,976 |
Total Liabilities | 42,951,129 | 44,484,152 |
Stockholders' (Deficit) Equity | ||
Preferred stock, par value $0.001; 5,000,000 shares authorized; none issued | ||
Common stock, par value $0.001; 200,000,000 shares authorized; 4,102,577 and 3,340,508 shares issued and outstanding, respectively | 4,103 | 3,341 |
Additional paid-in-capital | 161,466,749 | 158,761,077 |
Accumulated deficit | (167,942,579) | (156,218,731) |
Total Stockholders' (Deficit) Equity | (6,471,727) | 2,545,687 |
Total Liabilities and Stockholders' (Deficit) Equity | $ 36,479,402 | $ 47,029,839 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Debt discount | $ 2,868,708 | $ 3,744,941 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 4,102,577 | 3,340,508 |
Common stock, outstanding (in shares) | 4,102,577 | 3,340,508 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | $ 6,872,342 | $ 7,030,907 | $ 13,606,432 | $ 14,203,374 |
Operating Expenses | ||||
Infrastructure and access | 2,631,114 | 2,490,508 | 5,182,841 | 5,049,484 |
Depreciation and amortization | 3,044,132 | 2,393,254 | 5,571,778 | 4,741,127 |
Network operations | 1,298,590 | 1,370,126 | 2,589,778 | 2,704,558 |
Customer support | 484,664 | 653,534 | 1,027,855 | 1,326,417 |
Sales and marketing | 883,961 | 1,545,366 | 2,378,881 | 2,876,048 |
General and administrative | 1,604,542 | 1,561,775 | 3,584,335 | 3,485,842 |
Total Operating Expenses | 9,947,003 | 10,014,563 | 20,335,468 | 20,183,476 |
Operating Loss | (3,074,661) | (2,983,656) | (6,729,036) | (5,980,102) |
Other Income/(Expense) | ||||
Interest expense, net | 1,588,291 | 1,670,428 | 3,195,411 | 3,334,692 |
Loss from continuing operations | (4,662,952) | (4,654,084) | (9,924,447) | (9,314,794) |
Loss from discontinued operations | ||||
Operating loss | (67,576) | (4,196,727) | (2,977,143) | (8,459,083) |
Gain on sale of assets | 1,177,742 | |||
Total loss from discontinued operations | (67,576) | (4,196,727) | (1,799,401) | (8,459,083) |
Net Loss | $ (4,730,528) | $ (8,850,811) | $ (11,723,848) | $ (17,773,877) |
(Loss) gain per share – basic and diluted | ||||
Continuing (in dollars per share) | $ (1.36) | $ (1.39) | $ (2.93) | $ (2.79) |
Discontinued | ||||
Operating loss (in dollars per share) | (0.02) | (1.26) | (0.88) | (2.54) |
Gain on sale of assets (in dollars per share) | 0.35 | |||
Total discontinued (in dollars per share) | (0.02) | (1.26) | (0.53) | (2.54) |
Net loss per common share – Basic and diluted (in dollars per share) | $ (1.38) | $ (2.65) | $ (3.46) | $ (5.33) |
Weighted average common shares outstanding – Basic and diluted (in shares) | 3,432,384 | 3,336,219 | 3,387,462 | 3,334,539 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2015 | 3,340,508 | |||
Balance at Dec. 31, 2015 | $ 3,341 | $ 158,761,077 | $ (156,218,731) | $ 2,545,687 |
Proceeds from issuance of common stock and warrants, net of offering costs of $50,000 (in shares) | 750,000 | |||
Proceeds from issuance of common stock and warrants, net of offering costs of $50,000 | $ 750 | 2,229,250 | 2,230,000 | |
Issuance of common stock for consulting services (in shares) | 5,000 | |||
Issuance of common stock for consulting services | $ 5 | 19,995 | 20,000 | |
Issuance of common stock under employee stock purchase plan (in shares) | 7,069 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 7 | 19,568 | 19,575 | |
Stock-based compensation for options | 436,859 | 436,859 | ||
Net loss | (11,723,848) | (11,723,848) | ||
Balance (in shares) at Jun. 30, 2016 | 4,102,577 | |||
Balance at Jun. 30, 2016 | $ 4,103 | $ 161,466,749 | $ (167,942,579) | $ (6,471,727) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows used in operating activities: | ||
Net loss | $ (11,723,848) | $ (17,773,877) |
Loss from discontinued operations | (1,799,401) | (8,459,083) |
Loss from continuing operations | (9,924,447) | (9,314,794) |
Adjustments to reconcile loss from continuing operations to net cash used in continuing operating activities: | ||
Provision for doubtful accounts | 100,000 | |
Depreciation for property and equipment | 4,949,222 | 4,544,991 |
Amortization of intangibles | 622,556 | 196,136 |
Amortization of debt issuance costs | 395,755 | 493,950 |
Amortization of debt discount | 480,479 | 599,695 |
Capitalized interest | 746,900 | 713,402 |
Stock-based compensation - Options | 436,859 | 422,079 |
Stock-based compensation - Stock issued for services | 20,000 | |
Stock-based compensation - Employee stock purchase plan | 2,936 | 3,115 |
Deferred rent | (129) | 127,860 |
Loss on write off of property and equipment | 528,364 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (102,009) | 198,977 |
Prepaid expenses and other current assets | (282,211) | (380,462) |
Other assets | (4,573) | 249,024 |
Accounts payable | (542,611) | 112,796 |
Accrued expenses | (274,516) | 517,952 |
Deferred revenues | (341,784) | (116,404) |
Other liabilities | (572,110) | 124,515 |
Net cash used in continuing operating activities | (3,861,319) | (1,407,168) |
Net cash used in discontinued operating activities | (1,872,023) | (6,015,462) |
Net cash used in operating activities | (5,733,342) | (7,422,630) |
Cash flows used in investing activities: | ||
Acquisitions of property and equipment | (1,160,400) | (3,827,552) |
Payments of security deposits | (2,189) | |
Deferred acquisition payments | (5,492) | |
Net cash used in continuing investing activities | (1,160,400) | (3,835,233) |
Net cash used in discontinued investing activities | (174,693) | |
Net cash used in investing activities | (1,160,400) | (4,009,926) |
Cash flows provided by (used in) financing activities: | ||
Payments on capital lease obligations | (491,933) | (496,226) |
Net proceeds from the issuance of common stock and warrants | 2,230,000 | |
Net cash provided by (used in) continuing financing activities | 1,754,706 | (477,819) |
Net cash provided by (used in) financing activities | 1,754,706 | (477,819) |
Net decrease in cash and cash equivalents | (5,139,036) | (11,910,375) |
Cash and cash equivalents - Beginning of period | 15,116,531 | 38,027,509 |
Cash and cash equivalents - End of period | 9,977,495 | 26,117,134 |
Supplemental disclosures of cash flow information: | ||
Interest | 1,560,999 | 1,559,200 |
Income taxes | 12,780 | 21,900 |
Under capital leases | 810,026 | |
Included in accrued expenses | 145,248 | 317,393 |
Exchange of intangible assets - discontinued operations (Note 4) | $ 3,837,783 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | Note 1. Organization and Nature of Business Towerstream Corporation (referred to as “Towerstream” or the “Company”) was incorporated in Delaware in December 1999. During its first decade of operations, the Company's business activities were focused on delivering fixed wireless broadband services to commercial customers over a wireless network transmitting over both regulated and unregulated radio spectrum. The Company's fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. The Company provides services to business customers in New York City, Boston, Chicago, Los Angeles, San Francisco, Seattle, Miami, Dallas-Fort Worth, Houston, Philadelphia, Las Vegas-Reno and Providence-Newport. The Company's “Fixed Wireless business” has historically grown both organically and through the acquisition of five other fixed wireless broadband providers in various markets. In January 2013, the Company incorporated a wholly-owned subsidiary, Hetnets Tower Corporation (“Hetnets”), to operate a new business designed to leverage its fixed wireless network in urban markets to provide other wireless technology solutions and services. Hetnets built a carrier-class network which offered a shared wireless infrastructure platform, primarily for (i) co-location of customer owned antenna and related equipment and (ii) Wi-Fi access and offloading. The Company referred to this as its “Shared Wireless Infrastructure” or “Shared Wireless” business. During the fourth quarter of 2015, the Company determined to exit this business and curtailed activities in its smaller markets. The remaining network, located in New York City (or “NYC”), was the largest and had a lease access contract with a major cable company. As a result, the Company explored opportunities during the fourth quarter of 2015 and continuing into the first quarter of 2016 to sell the New York City network. On March 9, 2016, the Company completed a sale and transfer of certain assets pursuant to an Asset Purchase Agreement (the "Agreement") with a large cable company (the "Buyer"). Under the terms of the Agreement, the Buyer assumed certain rooftop leases and acquired ownership of and the right to operate the Wi-Fi access point and related equipment associated with such leases. The Company retained ownership of all backhaul and related equipment, and the parties entered into an agreement under which the Company provides backhaul services to the Buyer. The agreement is for a three-year period with two one-year renewals and is cancellable by the Buyer on sixty-days notice. During the first quarter of 2016, the Company determined that it would not be able to sell the remainder of the New York City network, and accordingly, all remaining assets were redeployed into the fixed wireless network or written off. The operating results and cash flows for Hetnets have been reclassified and presented as discontinued operating results for all periods presented in these condensed consolidated financial statements. |
Note 2 - Liquidity and Manageme
Note 2 - Liquidity and Management Plans | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Liquidity and Management Plans [Text Block] | Note 2. Liquidity and Management Plans The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of June 30, 2016, the Company had cash and cash equivalents of approximately $10.0 million and working capital of approximately $4.5 million. The Company incurred significant operating losses since inception and continues to generate losses from operations and as of June 30, 2016, the Company has an accumulated deficit of $167.9 million. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Historically, the Company has financed its operation through private and public placement of equity securities, as well as debt financing and capital leases. The Company’s ability to fund its longer term cash requirements is subject to multiple risks, many of which are beyond its control. The Company intends to raise additional capital, either through debt or equity financings or through the potential sale of the Company’s assets in order to achieve its business plan objectives. Management believes that it can be successful in obtaining additional capital; however, no assurance can be provided that the Company will be able to do so. There is no assurance that any funds raised will be sufficient to enable the Company to attain profitable operations or continue as a going concern. To the extent that the Company is unsuccessful, the Company may need to curtail or cease its operations and implement a plan to extend payables or reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. |
Note 3 - Summary of Significant
Note 3 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 3. Summary of Significant Accounting Policies Basis of Presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Company’s accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2015, and updated, as necessary, in this Quarterly Report on Form 10-Q. Retroactive Adjustment For Reverse Stock Split Use of Estimates. Concentration of Credit Risk . Accounts Receivable Three Months Ended June 30, Six Months Ended June 30, 201 6 201 5 201 6 201 5 Beginning of period $ 81,949 $ 71,343 $ 92,863 $ 59,273 Additions - 70,000 - 100,000 Deductions (21,771 ) (23,595 ) (32,685 ) (41,525 ) End of period $ 60,178 $ 117,748 $ 60,178 $ 117,748 Revenue Recognition. Deferred Revenues. Intrinsic Value of Stock Options and Warrants Reclassifications. Segments Recent Accounting Pronouncements. Revenue from Contracts with Customers In March 2016, the Financial Accounting Standards B issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The new standard involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new standard will be effective for the Company on January 1, 2017. The Company is currently evaluating the impact of its pending adoption of this standard on its condensed consolidated financial statements and related disclosures In April 2016, the FASB issued ASU No. 2016-10 (“ASU 2016-10”), “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 will affect all entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective, the amendments in this update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements for ASU 2014-09. The Company is currently evaluating the effect that ASU 2016-10 will have on the Company’s consolidated financial position and results of operations. In May 2016, the FASB issued ASU No. 2016-12 (“ASU 2016-12”), “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” ASU 2016-12 will affect all entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective, the amendments in this update affect narrow aspects of Topic 606 including among others: assessing collectability criterion, noncash consideration, and presentation of sales taxes and other similar taxes collected from customers. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements for ASU 2014-09. The Company is currently evaluating the effect that ASU 2016-12 will have on the Company’s consolidated financial position and results of operations. Subsequent Events |
Note 4 - Discontinued Operation
Note 4 - Discontinued Operations | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 4 . Discontinued Operations During the fourth quarter of 2015, the Company determined to exit the business conducted by Hetnets and curtailed activities in its smaller markets. The remaining network, located in New York City (or “NYC”), was the largest and had a lease access contract with a major cable company. As a result, the Company explored opportunities during the fourth quarter of 2015 and continuing into the first quarter of 2016 to sell the New York City network. On March 9, 2016, the Company completed a sale and transfer of certain assets pursuant to an Asset Purchase Agreement (the "Agreement") with a large cable company (the "Buyer"). Under the terms of the Agreement, the Buyer assumed certain rooftop leases and acquired ownership of and the right to operate the Wi-Fi access point and related equipment associated with such leases. The Company retained ownership of all backhaul and related equipment, and the parties entered into an agreement under which the Company provides backhaul services to the Buyer. The agreement is for a three-year period with two one-year renewals and is cancellable by the Buyer on sixty days notice. In connection with the Agreement, the Company transferred to the Buyer a net book value of network assets aggregating $2,660,041 in exchange for the backhaul agreement valued at $3,837,783. The backhaul agreement has been recorded as an intangible asset in the accompanying condensed consolidated balance sheet. As a result, during the first quarter of 2016, the Company recognized a gain of $1,177,742 in its discontinued operations. The Company has determined that it will not be able to sell the remaining network locations in New York City. As a result, the Company recognized charges totaling $1,585,319 in the first quarter of 2016 which included $453,403 representing the estimated cost to settle lease obligations, $528,364 to write off network assets which could not be redeployed into the fixed wireless network, $110,500 related to security deposits which are not expected to be recovered, and $493,052 related to the accelerated expensing of deferred acquisition costs. These costs were partially offset by a $1,244,284 reduction in the accrual for terminated lease obligations that was recorded in the fourth quarter of 2015. This reduction reflects the outcome of settlements negotiated in the first quarter of 2016 with certain landlords. The operating results and cash flows for Hetnets have been reclassified and presented as discontinued operations in these condensed consolidated financial statements for all periods presented. Discontinued Operations A more detailed presentation of loss from discontinued operations is set forth below. There has been no allocation of consolidated interest expense to discontinued operations. Three Months Ended June 30, Six Months Ended June 30, 201 6 201 5 201 6 201 5 Revenues $ - $ 826,226 $ 553,302 $ 1,613,854 Operating expenses: Infrastructure and access - 3,662,021 2,523,222 7,359,177 Depreciation - 1,015,859 638,681 2,047,369 Network operations 9,364 195,640 192,947 391,034 Customer support services - 106,134 69,804 188,446 Sales and marketing - 43,299 246 86,911 General and administrative 58,212 - 105,545 - Total operating expenses 67,576 5,022,953 3,530,445 10,072,937 Net operating loss (67,576 ) (4,196,727 ) (2,977,143 ) (8,459,083 ) Gain on sale of assets - - 1,177,742 - Net Loss $ (67,576 ) $ (4,196,727 ) $ (1,799,401 ) $ (8,459,083 ) The components of the balance sheet accounts presented as discontinued operations were as follows: June 30, 2016 December 31, 2015 Assets: Accounts receivable, net $ 6,072 $ 715,993 Prepaid expenses and other current assets 231,978 278,891 Deferred acquisitions costs - 253,685 Total Current Assets $ 238,050 $ 1,248,569 Liabilities: Accounts payable $ 628,522 $ 556,800 Accrued expenses - 66,101 Accrued expenses - leases 2,378,658 3,284,467 Total Current Liabilities $ 3,007,180 $ 3,907,368 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 5. Property and Equipment Property and equipment is comprised of: June 30, 2016 December 31, 2015 Network and base station equipment $ 41,259,646 $ 38,351,119 Customer premise equipment 33,291,213 30,910,874 Information technology 4,851,736 4,810,865 Furniture, fixtures and other 1,713,430 1,713,722 Leasehold improvements 1,629,100 1,623,559 82,745,125 77,410,139 Less: accumulated depreciation 64,199,535 56,174,755 Property and equipment, net $ 18,545,590 $ 21,235,384 Depreciation expense for the three months ended June 30, 2016 and 2015 was $2,626,249 and $2,295,186, respectively. Depreciation expense for the six months ended June 30, 2016 and 2015 was $4,949,222 and $4,544,991, respectively. Property acquired through capital leases included within the Company’s property and equipment consists of the following: June 30 , 201 6 December 31, 201 5 Network and base station equipment $ 2,620,898 $ 2,620,898 Customer premise equipment 669,792 669,792 Information technology 1,860,028 1,860,028 5,150,718 5,150,718 Less: accumulated depreciation 3,622,432 3,114,968 Property acquired through capital leases, net $ 1,528,286 $ 2,035,750 |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 6. Intangible Assets Intangible assets consist of the following: June 30, 2016 December 31, 2015 Customer relationships $ 11,856,126 $ 11,856,126 Backhaul agreement 3,837,782 - FCC licenses 750,000 750,000 16,443,908 12,606,126 Less: accumulated amortization 11,955,652 11,333,096 Intangible assets, net $ 4,488,256 $ 1,273,030 Amortization expense for the three months ended June 30, 2016 and 2015 was $417,883 and $98,068, respectively. Amortization expense for the six months ended June 30, 2016 and 2015 was $622,556 and $196,136, respectively. The fair value of the backhaul agreement acquired in the transaction with a large cable company, as described in Note 4, is being amortized over the 36 month term of the agreement in quarterly amounts of $319,815 ending in March 2019. The customer contracts acquired in the Delos Internet acquisition are being amortized over a 50 month period in quarterly amounts of $98,068 ending April 2017. The Company’s licenses with the Federal Communications Commission (the “FCC”) are not subject to amortization as they have an indefinite useful life. |
Note 7 - Accrued Expenses
Note 7 - Accrued Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Accrued Liabilities Disclosure [Text Block] | Note 7. Accrued Expenses Accrued expenses consist of the following: June 30, 2016 December 31, 2015 Payroll and related $ 423,804 $ 551,448 Professional services 243,844 427,932 Other 414,139 339,680 Property and equipment 145,248 176,614 Network 94,781 133,544 Total $ 1,321,816 $ 1,629,218 Network represents costs incurred to provide services to the Company’s customers including tower rentals, bandwidth, troubleshooting and gear removal. |
Note 8 - Other Liabilities
Note 8 - Other Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | Note 8. Other Long-Term Liabilities Other long-term liabilities consist of the following: June 30, 2016 December 31, 2015 Deferred rent $ 655,304 $ 1,227,414 Deferred taxes 363,774 363,774 Total $ 1,019,078 $ 1,591,188 |
Note 9 - Long-term Debt
Note 9 - Long-term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 9. Long-Term Debt In October 2014, the Company entered into a loan agreement (the "Loan Agreement") with Melody Business Finance, LLC (the "Lender") which provided the Company with a $35 million term loan (the "Financing" or "Note") which matures in October 2019. The Note was issued at a 3% discount totaling $1,050,000 which is being amortized over the term of the Note. The Company recognized interest expense of $69,537 and $87,466 in connection with the amortization of this discount for the three months ended June 30, 2016 and 2015, respectively. The Company recognized interest expense of $143,601 and $179,231 in connection with the amortization of this discount for the six months ended June 30, 2016 and 2015, respectively. The unamortized balance totaled $470,135 at June 30, 2016 and $613,736 at December 31, 2015. The Note bears interest payable in cash at a rate equal to the greater of (i) the sum of the one month Libor rate on each payment date plus 7% or (ii) 8% per annum, and additional paid in kind (“PIK”), or deferred, interest that accrues at 4% per annum. The Company paid $750,659 and $720,892 of interest and accrued $375,329 and $360,446 of PIK interest for the three months ended June 30, 2016 and 2015, respectively. The Company paid $1,493,803 and $1,426,803 of interest and accrued $746,900 and $713,402 of PIK interest for the six months ended June 30, 2016 and 2015, respectively. The Loan Agreement contains several financial and non-financial covenants, the most significant of which is the maintenance of a minimum balance of $6.5 million in cash and cash equivalents. As of June 30, 2016, the Company was in compliance with all of the debt covenants. In connection with the Loan Agreement and pursuant to a Warrant and Registration Rights Agreement, the Company issued warrants (the “Warrants”) to purchase 180,000 shares of common stock of which two-thirds have an exercise price of $25.20 and one-third have an exercise price of $0.20, subject to customary adjustments under certain circumstances. The Warrants have a term of seven and a half years. The fair value of the warrants granted to the Lender of $2,463,231 was calculated using the Black-Scholes option pricing model and recorded as a debt discount. The debt discount is being amortized over the term of the Note using the effective interest rate. The Company recognized interest expense of $163,130 and $205,190 in connection with the amortization of this discount for the three months ended June 30, 2016 and 2015, respectively. The Company recognized interest expense of $336,878 and $420,464 in connection with the amortization of this discount for the six months ended June 30, 2016 and 2015, respectively. The unamortized balance totaled $1,102,907 at June 30, 2016 and $1,439,785 at December 31, 2015. The Company incurred costs, primarily professional services, of approximately $2,900,000 related to the Loan Agreement. These costs were recorded as a reduction to the note payable in the Company’s condensed consolidated balance sheet and are being amortized over the term of the Loan Agreement using the effective interest rate. Amortization expense totaled $191,641 and $241,051 for the three months ended June 30, 2016 and 2015, respectively. Amortization expense totaled $395,755 and $493,950 for the six months ended June 30, 2016 and 2015, respectively. The unamortized balance totaled $1,295,666 at June 30, 2016 and $ 1,691,421 at December 31, 2015. |
Note 10 - Capital Stock
Note 10 - Capital Stock | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 10 . Capital Stock On June 17, 2016, the Company entered into securities purchase agreements with certain accredited investors pursuant to which the Company raised $2,280,000 in a registered direct offering for a total of 750,000 shares (a “Share”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”). Each Share was sold as a unit (each, a “Unit”, and collectively, the “Units”) at a purchase price of $3.04 per Unit, with each Unit consisting of one Share and an unregistered warrant to purchase one share of Common Stock (collectively, the “Warrants”). The Common Stock and the Warrants are immediately separable and were issued separately. Expenses associated with this direct offering totaled $50,000 resulting in net proceeds to the Company of $2,230,000. Such net proceeds were allocated to the shares and the warrants issued in the amounts of $1,672,500 and $557,500, respectively, in proportion to their relative fair value on the date of issuance. |
Note 11 - Stock Options and War
Note 11 - Stock Options and Warrants | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 11 . Stock Options and Warrants Stock Options The Company uses the Black-Scholes option pricing model to value options issued to employees, directors and consultants. Compensation expense, including the estimated effect of forfeitures, is recognized over the period of service, generally the vesting period. Stock compensation expense and the weighted average assumptions used to calculate the fair values of stock options granted during the periods indicated were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Risk-free interest rate 1.1% - 1.2 % 1.6 % 1.1% - 1.4% 1.6 % Expected volatility 80% - 83 % 59 % 78% - 83% 59 % Expected life (in years) 4.2 4.1 4.2 4.1 Expected dividend yield - - - - Weighted average per share grant date fair value $ 0.11 $ 0.95 $0.12 $ 0.95 Stock-based compensation $ 140,474 $ 209,089 $436,859 $ 418,298 The risk-free interest rate was based on rates established by the Federal Reserve. The expected volatility was based upon the historical volatility for the Company’s common stock. The Company utilized historical data to determine the expected life of stock options. The dividend yield reflected the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the foreseeable future. Stock-based compensation is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized amount of stock options expense totaled $280,428 as of June 30, 2016 which will be recognized over a weighted-average period of 2.2 years. Option transactions under the stock option plans during the six months ended June 30, 2016 were as follows: Number Weighted Average Exercise Price Outstanding as of January 1, 2016 217,002 $ 52.20 Granted during 2016 112,750 4.00 Exercised - - Cancelled /expired 34,860 67.18 Outstanding as of June 30, 2016 294,892 $ 31.79 Exercisable as of June 30, 2016 189,456 $ 45.36 Grants under the stock option plans during the six months ended June 30, 2016 were as follows: Number Consultant grants 11,000 Executive grants 40,000 Employee grants 51,750 Annual grants to outside directors 10,000 Total 112,750 Options granted during the reporting period had terms ranging from five to ten years. All options were issued at an exercise price equal to the fair value on the date of grant. Consultant grants vesting periods range from vesting immediately upon issuance to vesting monthly over a one-year period from the date of issuance. Executive grants vesting periods range from vesting immediately upon issuance to vesting quarterly over a two-year period from the date of issuance. Employee grants vest annually over a three-year period from the date of issuance. Director grants vest over a one-year period from the date of issuance. The aggregate fair value of the options granted was $271,444 for the six months ended June 30, 2016. Cancellations for the six months ended June 30, 2016 related to employee terminations. The weighted average remaining contractual life of the outstanding options as of June 30, 2016 was 5.1 years. The intrinsic value associated with the options outstanding and exercisable was $3,900 and $1,900, respectively, as of June 30, 2016. The closing price of the Company’s common stock at June 30, 2016 was $3.40 per share. Stock Warrants Stock warrants during the six months ended June 30, 2016 were as follows: Number Weighted Average Exercise Price Outstanding as of January 1, 2016 202,500 $ 26.20 Granted during 2016 750,000 5.00 Outstanding as of June 30, 2016 952,500 $ 9.49 Exercisable as of June 30, 2016 202,500 $ 26.20 In connection with the June 17, 2016 offering, the Company issued 750,000 warrants. Each Warrant expires five years from the date of issuance, has an exercise price of $5.00 per share, and is exercisable six months from the date of issuance. The Company utilized the Black-Scholes model to value these warrants and attributed a value to them of $791,290 which was accounted for as an addition to additional paid-in capital. Assumptions included an interest rate of 1.17%, a term of 5 years, expected volatility of 81%, and a dividend yield of zero. The risk-free interest rate was based on rates established by the Federal Reserve. The expected volatility was based upon the historical volatility for the Company’s common stock. The Company utilized safe harbor guidelines allowed by the Securities and Exchange Commission to estimate the expected life of the warrants. The dividend yield reflected the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the foreseeable future. The weighted average remaining contractual life of the warrants was five years. The aggregate intrinsic value associated with the warrants outstanding and exercisable as of June 30, 2016 was $192,000. Cashless Exercises The number of shares issuable upon the exercise of an option or a warrant will be lower if a holder exercises on a cashless basis. Under a cashless exercise, the holder uses a portion of the shares that would otherwise be issuable upon exercise, rather than cash, as consideration for the exercise. The amount of net shares issuable in connection with a cashless exercise will vary based on the exercise price of the option or warrant compared to the market price of the Company’s common stock on the date of exercise. |
Note 12 - Employee Stock Purcha
Note 12 - Employee Stock Purchase Plan | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Employee Stock Purchase Plan Disclosure [Text Block] | Note 12. Employee Stock Purchase Plan Under the Company’s 2010 Employee Stock Purchase Plan (“ESPP Plan”), participants can purchase shares of the Company’s stock at a 15% discount. In April 2016, shareholders approved an increase in the number of shares of common stock issuable under the ESPP Plan from 200,000 to 500,000 shares of common stock. During the three and six months ended June 30, 2016, a total of 2,610 and 7,069 shares were issued under the ESPP Plan with a fair value of $8,874 and $19,575, respectively. The Company recognized $1,152 and $2,936 of stock-based compensation related to the 15% discount for the three and six months ended June 30, 2016, respectively. The Company recognized $1,167 and $3,115 of stock-based compensation related to the 15% discount for the three and six months ended June 30, 2015, respectively. |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurement | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 13. Fair Value Measurement Valuation Hierarchy The accounting standard of the FASB for fair value measurements establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to their short maturities. There were no changes in the valuation techniques during the three and six months ended June 30, 2016. |
Note 14 - Net Loss Per Common S
Note 14 - Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 14. Net Loss Per Common Share Basic and diluted net loss per share has been calculated by dividing net loss by the weighted average number of common shares outstanding during the period. For the three and six months ended June 30, 2016 and 2015, the following common stock equivalents were excluded from the computation of diluted net loss per common share because they were anti-dilutive. The exercise or issuance of these common stock equivalents outstanding at June 30, 2016 and 2015 would dilute earnings per share if the Company becomes profitable in the future. As of June 30, 2016 2015 Stock options 294,892 185,602 Warrants 952,500 142,500 Total 1,247,392 328,102 |
Note 15 - Commitments
Note 15 - Commitments | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 15. Commitments Operating Lease Obligations The Company has entered into operating leases related to roof rights, cellular towers, office space, and equipment leases under various non-cancelable agreements expiring through April 2025. Certain of these operating leases include extensions, at the Company's option, for additional terms ranging from one to twenty-five years. Amounts associated with the extension periods have not been included in the table below as it is not presently determinable which options, if any, the Company will elect to exercise. As of June 30, 2016, total future operating lease obligations were as follows: Remainder of 2016 $ 7,450,265 2017 8,829,245 2018 4,389,155 2019 2,721,992 2020 623,067 Thereafter 95,371 $ 24,109,095 Rent expenses were as follows: Three Months Ended June 30, Six Months Ended June 30, 201 6 201 5 201 6 201 5 Points of Presence $ 2,166,062 $ 2,009,366 $ 4,241,720 $ 4,095,064 Corporate offices 88,651 96,669 237,798 188,861 Other 113,066 100,605 234,555 188,940 $ 2,367,779 $ 2,206,640 $ 4,714,073 $ 4,472,865 Rent expenses related to Points of Presence and other were included in infrastructure and access in the Company’s condensed consolidated statements of operations. Rent expense related to our corporate offices was included in general and administrative expenses in the Company’s condensed consolidated statements of operations. In September 2013, the Company entered into a new lease agreement for its corporate offices and new warehouse space. The lease commenced on January 1, 2014 and expires on December 31, 2019 with an option to renew for an additional five-year term through December 31, 2024. The Company spent approximately $600,000 in leasehold improvements in connection with consolidating its corporate based employees from two buildings into one building. The Landlord agreed to contribute $380,000 in funding towards qualified leasehold improvements and made such payment in February 2014. Total annual rent payments began at $359,750 for 2014 and escalate by 3% annually reaching $416,970 for 2019. In December 2014, the Company entered into a new lease agreement in Florida, primarily for a second sales center. The lease commenced in February 2015 for 38 months with an option to renew for an additional five-year period. Total annual rent payments started at $53,130 and escalated by 3% annually. In April 2016, the Company terminated the Florida lease. Under the terms of the agreement, the Company forfeited its security deposit of $26,648 and agreed to make a termination payment of $25,000. Capital Lease Obligations The Company has entered into capital leases to acquire property and equipment expiring through June 2018. As of June 30, 2016, total future capital lease obligations were as follows: Remainder of 2016 $ 550,567 2017 837,811 2018 143,796 $ 1,532,174 Less: interest expense 98,591 Total capital lease obligations $ 1,433,583 Current $ 980,389 Long-term $ 453,194 |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 16. Subsequent Events On July 5, 2016, the Company filed a certificate of amendment (the “Amendment”) to its Certificate of Incorporation with the Secretary of State of the State of Delaware in order to effectuate a reverse stock split of the Company’s issued and outstanding common stock, par value $0.001 per share, on a one for twenty basis (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every twenty shares of the Company’s pre-reverse split common stock will be combined and reclassified into one share of the Company’s common stock. No fractional shares of common stock will be issued. Stockholders who otherwise would be entitled to a fractional share shall receive the next higher number of whole shares. The par value and other terms of Company’s common stock were not affected by the Reverse Stock Split. The Reverse Stock Split was effective July 7, 2016. On July 6, 2016, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with an accredited investor pursuant to which the Company raised $1,250,000 in a private placement offering 892,857 units of the Company’s securities (the “Units”) at a price of $1.40 per Unit. As adjusted for the Reverse Stock Split, each Unit consists of (i) one share of Series B Convertible Preferred Stock, par value $0.001 per share (the “Preferred Stock”), with each share of Preferred Stock convertible into one half of a share of common stock, and (ii) one fourth of a warrant (a “Warrant”), with each Warrant exercisable into common stock at an exercise price equal to $3.00 per share of common stock. The transaction closed on July 7, 2016. On July 21 and 26, 2016, the holder converted all of the shares of the preferred stock into 446,429 shares of common stock. Also on July 7, 2016, the Company entered into a First Amendment (the “Amendment”) to those certain Securities Purchase Agreements, dated June 17, 2016 (the “June Purchase Agreements”), pursuant to which the Company agreed to amend the June Purchase Agreements entered into by and between certain investors and the Company. Pursuant to the terms of the Amendment and as adjusted for the Reverse Stock Split, the June Warrants were amended and restated to change the exercise price of the warrants to $3.80 from $5.00 and to include a mandatory exercise right of the Company to force exercise of the June Warrants if the Company’s common stock trades at or above $7.60 for any ten consecutive trading days out of a thirty consecutive trading day period (subject to certain equity conditions, a 9.99% beneficial ownership limitation and applicable NASDAQ shareholder approval rules, if any). All other terms of the June Warrants, including cash exercise if registered for resale within 90 days of closing, remain unchanged. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Company’s accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2015, and updated, as necessary, in this Quarterly Report on Form 10-Q. |
Stockholders' Equity, Policy [Policy Text Block] | Retroactive Adjustment For Reverse Stock Split |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk . |
Receivables, Policy [Policy Text Block] | Accounts Receivable Three Months Ended June 30, Six Months Ended June 30, 201 6 201 5 201 6 201 5 Beginning of period $ 81,949 $ 71,343 $ 92,863 $ 59,273 Additions - 70,000 - 100,000 Deductions (21,771 ) (23,595 ) (32,685 ) (41,525 ) End of period $ 60,178 $ 117,748 $ 60,178 $ 117,748 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenues. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Intrinsic Value of Stock Options and Warrants |
Reclassification, Policy [Policy Text Block] | Reclassifications. |
Segment Reporting, Policy [Policy Text Block] | Segments |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements. Revenue from Contracts with Customers In March 2016, the Financial Accounting Standards B issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The new standard involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new standard will be effective for the Company on January 1, 2017. The Company is currently evaluating the impact of its pending adoption of this standard on its condensed consolidated financial statements and related disclosures In April 2016, the FASB issued ASU No. 2016-10 (“ASU 2016-10”), “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 will affect all entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective, the amendments in this update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements for ASU 2014-09. The Company is currently evaluating the effect that ASU 2016-10 will have on the Company’s consolidated financial position and results of operations. In May 2016, the FASB issued ASU No. 2016-12 (“ASU 2016-12”), “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” ASU 2016-12 will affect all entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this update affect the guidance in ASU 2014-09 which is not yet effective, the amendments in this update affect narrow aspects of Topic 606 including among others: assessing collectability criterion, noncash consideration, and presentation of sales taxes and other similar taxes collected from customers. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements for ASU 2014-09. The Company is currently evaluating the effect that ASU 2016-12 will have on the Company’s consolidated financial position and results of operations. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Note 3 - Summary of Significa24
Note 3 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule Of Allowance For Doubtful Accounts Receivable [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 201 6 201 5 201 6 201 5 Beginning of period $ 81,949 $ 71,343 $ 92,863 $ 59,273 Additions - 70,000 - 100,000 Deductions (21,771 ) (23,595 ) (32,685 ) (41,525 ) End of period $ 60,178 $ 117,748 $ 60,178 $ 117,748 |
Note 4 - Discontinued Operati25
Note 4 - Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule Of Components Of Loss From Discontinued Operations [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 201 6 201 5 201 6 201 5 Revenues $ - $ 826,226 $ 553,302 $ 1,613,854 Operating expenses: Infrastructure and access - 3,662,021 2,523,222 7,359,177 Depreciation - 1,015,859 638,681 2,047,369 Network operations 9,364 195,640 192,947 391,034 Customer support services - 106,134 69,804 188,446 Sales and marketing - 43,299 246 86,911 General and administrative 58,212 - 105,545 - Total operating expenses 67,576 5,022,953 3,530,445 10,072,937 Net operating loss (67,576 ) (4,196,727 ) (2,977,143 ) (8,459,083 ) Gain on sale of assets - - 1,177,742 - Net Loss $ (67,576 ) $ (4,196,727 ) $ (1,799,401 ) $ (8,459,083 ) |
Discontinued Operation, Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | June 30, 2016 December 31, 2015 Assets: Accounts receivable, net $ 6,072 $ 715,993 Prepaid expenses and other current assets 231,978 278,891 Deferred acquisitions costs - 253,685 Total Current Assets $ 238,050 $ 1,248,569 Liabilities: Accounts payable $ 628,522 $ 556,800 Accrued expenses - 66,101 Accrued expenses - leases 2,378,658 3,284,467 Total Current Liabilities $ 3,007,180 $ 3,907,368 |
Note 5 - Property and Equipme26
Note 5 - Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, 2016 December 31, 2015 Network and base station equipment $ 41,259,646 $ 38,351,119 Customer premise equipment 33,291,213 30,910,874 Information technology 4,851,736 4,810,865 Furniture, fixtures and other 1,713,430 1,713,722 Leasehold improvements 1,629,100 1,623,559 82,745,125 77,410,139 Less: accumulated depreciation 64,199,535 56,174,755 Property and equipment, net $ 18,545,590 $ 21,235,384 |
Schedule of Capital Leased Assets [Table Text Block] | June 30 , 201 6 December 31, 201 5 Network and base station equipment $ 2,620,898 $ 2,620,898 Customer premise equipment 669,792 669,792 Information technology 1,860,028 1,860,028 5,150,718 5,150,718 Less: accumulated depreciation 3,622,432 3,114,968 Property acquired through capital leases, net $ 1,528,286 $ 2,035,750 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | June 30, 2016 December 31, 2015 Customer relationships $ 11,856,126 $ 11,856,126 Backhaul agreement 3,837,782 - FCC licenses 750,000 750,000 16,443,908 12,606,126 Less: accumulated amortization 11,955,652 11,333,096 Intangible assets, net $ 4,488,256 $ 1,273,030 |
Note 7 - Accrued Expenses (Tabl
Note 7 - Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, 2016 December 31, 2015 Payroll and related $ 423,804 $ 551,448 Professional services 243,844 427,932 Other 414,139 339,680 Property and equipment 145,248 176,614 Network 94,781 133,544 Total $ 1,321,816 $ 1,629,218 |
Note 8 - Other Liabilities (Tab
Note 8 - Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Other Liabilities [Table Text Block] | June 30, 2016 December 31, 2015 Deferred rent $ 655,304 $ 1,227,414 Deferred taxes 363,774 363,774 Total $ 1,019,078 $ 1,591,188 |
Note 11 - Stock Options and W30
Note 11 - Stock Options and Warrants (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Risk-free interest rate 1.1% - 1.2 % 1.6 % 1.1% - 1.4% 1.6 % Expected volatility 80% - 83 % 59 % 78% - 83% 59 % Expected life (in years) 4.2 4.1 4.2 4.1 Expected dividend yield - - - - Weighted average per share grant date fair value $ 0.11 $ 0.95 $0.12 $ 0.95 Stock-based compensation $ 140,474 $ 209,089 $436,859 $ 418,298 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number Weighted Average Exercise Price Outstanding as of January 1, 2016 217,002 $ 52.20 Granted during 2016 112,750 4.00 Exercised - - Cancelled /expired 34,860 67.18 Outstanding as of June 30, 2016 294,892 $ 31.79 Exercisable as of June 30, 2016 189,456 $ 45.36 |
Schedule Of Grants Under Stock Option Plan Details [Table Text Block] | Number Consultant grants 11,000 Executive grants 40,000 Employee grants 51,750 Annual grants to outside directors 10,000 Total 112,750 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Number Weighted Average Exercise Price Outstanding as of January 1, 2016 202,500 $ 26.20 Granted during 2016 750,000 5.00 Outstanding as of June 30, 2016 952,500 $ 9.49 Exercisable as of June 30, 2016 202,500 $ 26.20 |
Note 14 - Net Loss Per Common31
Note 14 - Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | As of June 30, 2016 2015 Stock options 294,892 185,602 Warrants 952,500 142,500 Total 1,247,392 328,102 |
Note 15 - Commitments (Tables)
Note 15 - Commitments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Remainder of 2016 $ 7,450,265 2017 8,829,245 2018 4,389,155 2019 2,721,992 2020 623,067 Thereafter 95,371 $ 24,109,095 |
Schedule of Rent Expense [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 201 6 201 5 201 6 201 5 Points of Presence $ 2,166,062 $ 2,009,366 $ 4,241,720 $ 4,095,064 Corporate offices 88,651 96,669 237,798 188,861 Other 113,066 100,605 234,555 188,940 $ 2,367,779 $ 2,206,640 $ 4,714,073 $ 4,472,865 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Remainder of 2016 $ 550,567 2017 837,811 2018 143,796 $ 1,532,174 Less: interest expense 98,591 Total capital lease obligations $ 1,433,583 Current $ 980,389 Long-term $ 453,194 |
Note 2 - Liquidity and Manage33
Note 2 - Liquidity and Management Plans (Details Textual) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents, at Carrying Value | $ 9,977,495 | $ 15,116,531 | $ 26,117,134 | $ 38,027,509 |
Working Capital | 4,500,000 | |||
Retained Earnings (Accumulated Deficit) | $ (167,942,579) | $ (156,218,731) |
Note 3 - Summary of Significa34
Note 3 - Summary of Significant Accounting Policies (Details Textual) | Jun. 30, 2016USD ($) |
Cash, Uninsured Amount | $ 9,700,000 |
Cash, FDIC Insured Amount | $ 250,000 |
Note 3 - Changes in Allowance f
Note 3 - Changes in Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Beginning of period | $ 81,949 | $ 71,343 | $ 92,863 | $ 59,273 |
Additions | 70,000 | 100,000 | ||
Deductions | (21,771) | (23,595) | (32,685) | (41,525) |
End of period | $ 60,178 | $ 117,748 | $ 60,178 | $ 117,748 |
Note 4 - Discontinued Operati36
Note 4 - Discontinued Operations (Details Textual) | Mar. 09, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Shared Wireless Business [Member] | |||||
Asset Purchase Agreement, Renewal Term | 1 year | ||||
Asset Purchase Agreement, Term | 3 years | ||||
Asset Purchase Agreement, Number of One Year Renewals | 2 | ||||
Asset Purchase Agreement, Cancellation Notice | 60 days | ||||
Disposal Group, Including Discontinued Operation, Assets | $ 2,660,041 | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 3,837,783 | ||||
Asset Impairment and Other Charges | $ 1,585,319 | ||||
Estimated Costs to Settle Lease Obligations | $ 453,403 | ||||
Impairment of Long-Lived Assets Held-for-use | 528,364 | ||||
Write off of Security Deposits | 110,500 | ||||
Accelerated Expensing of Deferred Acquistion Costs | $ 493,052 | ||||
Reduction in Accrual for Terminated Lease Obligations | $ 1,244,284 | ||||
Disposal Group, Including Discontinued Operation, Assets | 1,177,742 | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 3,837,783 |
Note 4 - Loss From Discontinued
Note 4 - Loss From Discontinued Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | $ 826,226 | $ 553,302 | $ 1,613,854 | |
Infrastructure and access | 3,662,021 | 2,523,222 | 7,359,177 | |
Depreciation | 1,015,859 | 638,681 | 2,047,369 | |
Network operations | 9,364 | 195,640 | 192,947 | 391,034 |
Customer support services | 106,134 | 69,804 | 188,446 | |
Sales and marketing | 43,299 | 246 | 86,911 | |
General and administrative | 58,212 | 105,545 | ||
Total operating expenses | 67,576 | 5,022,953 | 3,530,445 | 10,072,937 |
Net operating loss | (67,576) | (4,196,727) | (2,977,143) | (8,459,083) |
Gain on sale of assets | 1,177,742 | |||
Loss from discontinued operations | $ (67,576) | $ (4,196,727) | $ (1,799,401) | $ (8,459,083) |
Note 4 - Components of Balance
Note 4 - Components of Balance Sheet Accounts (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Network [Member] | ||
Liabilities: | ||
Accrued expenses | $ 2,378,658 | $ 3,284,467 |
Accounts receivable, net | 6,072 | 715,993 |
Prepaid expenses and other current assets | 231,978 | 278,891 |
Deferred acquisitions costs | 253,685 | |
Total Current Assets | 238,050 | 1,248,569 |
Accounts payable | 628,522 | 556,800 |
Accrued expenses | 66,101 | |
Total Current Liabilities | $ 3,007,180 | $ 3,907,368 |
Note 5 - Property and Equipme39
Note 5 - Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Depreciation | $ 2,626,249 | $ 2,295,186 | $ 4,949,222 | $ 4,544,991 |
Note 5 - Property and Equipme40
Note 5 - Property and Equipment (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Network and Base Station Equipment [Member] | ||
Property, Plant, and Equipment Gross | $ 41,259,646 | $ 38,351,119 |
Customer Premise Equipment [Member] | ||
Property, Plant, and Equipment Gross | 33,291,213 | 30,910,874 |
Information Technology [Member] | ||
Property, Plant, and Equipment Gross | 4,851,736 | 4,810,865 |
Furniture and Fixtures [Member] | ||
Property, Plant, and Equipment Gross | 1,713,430 | 1,713,722 |
Leasehold Improvements [Member] | ||
Property, Plant, and Equipment Gross | 1,629,100 | 1,623,559 |
Property, Plant, and Equipment Gross | 82,745,125 | 77,410,139 |
Less: accumulated depreciation | 64,199,535 | 56,174,755 |
Property and equipment, net | $ 18,545,590 | $ 21,235,384 |
Note 5 - Property Acquired Thro
Note 5 - Property Acquired Through Capital Leases (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Network and Base Station Equipment [Member] | ||
Capital Leased Assets Gross | $ 2,620,898 | $ 2,620,898 |
Customer Premise Equipment [Member] | ||
Capital Leased Assets Gross | 669,792 | 669,792 |
Information Technology [Member] | ||
Capital Leased Assets Gross | 1,860,028 | 1,860,028 |
Capital Leased Assets Gross | 5,150,718 | 5,150,718 |
Less: accumulated depreciation | 3,622,432 | 3,114,968 |
Property acquired through capital leases, net | $ 1,528,286 | $ 2,035,750 |
Note 6 - Intangible Assets (Det
Note 6 - Intangible Assets (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Feb. 28, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Time Warner Cable [Member] | Backhaul Agreement [Member] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||||
Quarterly Amortization Amount | $ 319,815 | |||||
Delos Internet [Member] | Customer Relationships [Member] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 60 days | |||||
Quarterly Amortization Amount | $ 98,068 | |||||
Amortization of Intangible Assets | $ 417,883 | $ 98,068 | $ 622,556 | $ 196,136 |
Note 6 - Intangible Assets and
Note 6 - Intangible Assets and Goodwill (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Customer relationships | $ 11,856,126 | $ 11,856,126 |
Backhaul agreement | 3,837,782 | |
FCC licenses | 750,000 | 750,000 |
16,443,908 | 12,606,126 | |
Less: accumulated amortization | 11,955,652 | 11,333,096 |
Intangible assets, net | $ 4,488,256 | $ 1,273,030 |
Note 7 - Accrued Expenses (Deta
Note 7 - Accrued Expenses (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Payroll and Related [Member] | ||
Accrued Liabilities, Current | $ 423,804 | $ 551,448 |
Professional Services [Member] | ||
Accrued Liabilities, Current | 243,844 | 427,932 |
Other Accrued Liabilities [Member] | ||
Accrued Liabilities, Current | 414,139 | 339,680 |
Property and Equipment [Member] | ||
Accrued Liabilities, Current | 145,248 | 176,614 |
Network [Member] | ||
Accrued Liabilities, Current | 94,781 | 133,544 |
Accrued Liabilities, Current | $ 1,321,816 | $ 1,629,218 |
Note 8 - Other Liabilities, Cur
Note 8 - Other Liabilities, Current and Noncurrent (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred rent | $ 655,304 | $ 1,227,414 |
Deferred taxes | 363,774 | 363,774 |
Total | $ 1,019,078 | $ 1,591,188 |
Note 9 - Long-term Debt (Detail
Note 9 - Long-term Debt (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Oct. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Melody Business Finance LLC [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | ||||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | If Rate Is Greater Than LIBOR Rate [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | First Two Thirds Of Shares Under Warrants [Member] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 25.20 | ||||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | Remaining One Third Of Shares Under Warrants [Member] | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.20 | ||||||
Class of Warrant or Right, Warrant Term | 7 years 182 days | ||||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | Warrant [Member] | |||||||
Debt Instrument, Unamortized Discount | $ 1,102,907 | $ 1,102,907 | $ 1,102,907 | $ 1,439,785 | |||
Interest Expense, Debt | 163,130 | $ 205,190 | 336,878 | $ 420,464 | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | |||||||
Debt Instrument, Face Amount | $ 35,000,000 | ||||||
Debt Instrument Discount Rate | 3.00% | ||||||
Debt Instrument, Unamortized Discount | $ 470,135 | $ 1,050,000 | 470,135 | 470,135 | $ 613,736 | ||
Interest Expense, Debt | 69,537 | 87,466 | 143,601 | 179,231 | |||
Paid In Kind Interest Stated Rate | 4.00% | ||||||
Interest Paid | 750,659 | 720,892 | 1,493,803 | 1,426,803 | |||
Paid-in-Kind Interest | $ 375,329 | 360,446 | 746,900 | 713,402 | |||
Debt Covenant, Cash and Cash Equivalents, Minimum Balance | $ 6,500,000 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3 | 180,000 | 3 | 3 | |||
Warrants and Rights Outstanding | $ 2,463,231 | ||||||
Debt Issuance Costs, Gross | $ 2,900,000 | ||||||
Melody Business Finance LLC [Member] | |||||||
Debt Instrument, Unamortized Discount | $ 1,295,666 | $ 1,295,666 | $ 1,295,666 | $ 1,691,421 | |||
Debt Instrument, Unamortized Discount | $ 2,868,708 | $ 2,868,708 | 2,868,708 | $ 3,744,941 | |||
Paid-in-Kind Interest | $ 746,900 | 713,402 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5 | $ 5 | $ 5 | ||||
Class of Warrant or Right, Warrant Term | 5 years | ||||||
Warrants and Rights Outstanding | $ 791,290 | $ 791,290 | $ 791,290 | ||||
Amortization of Debt Issuance Costs | $ 191,641 | $ 241,051 | $ 395,755 | $ 493,950 |
Note 10 - Capital Stock (Detail
Note 10 - Capital Stock (Details Textual) - USD ($) | Jun. 17, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Private Placement [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | ||||
Proceeds from Issuance of Common Stock | $ 2,280,000 | ||||
Common Stock, Shares, Issued | 750,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | ||||
Sale of Stock, Price Per Share | $ 3.04 | ||||
Payments of Stock Issuance Costs | $ 50,000 | ||||
Proceeds from Issuance or Sale of Equity | $ 2,230,000 | ||||
Proceeds from Issuance of Common Stock | $ 1,672,500 | $ 2,230,000 | |||
Common Stock, Shares, Issued | 4,102,577 | 4,102,577 | 3,340,508 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||
Proceeds from Issuance or Sale of Equity | $ 2,230,000 | ||||
Proceeds from Issuance of Warrants | $ 557,500 |
Note 11 - Stock Options and W48
Note 11 - Stock Options and Warrants (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | |
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | ||
Employee Stock Option [Member] | Consultant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Employee Stock Option [Member] | Chief Operating Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Granted in Period, Fair Value | $ 271,444 | ||
Employee Stock Option [Member] | Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Employee Stock Option [Member] | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Employee Stock Option [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 280,428 | $ 280,428 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 73 days | ||
Warrant [Member] | |||
Fair Value Assumptions, Risk Free Interest Rate | 1.17% | ||
Fair Value Assumptions, Expected Term | 5 years | ||
Fair Value Assumptions, Expected Volatility Rate | 81.00% | ||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | 192,000 | $ 192,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 36 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 3,900 | $ 3,900 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 1,900 | $ 1,900 | |
Share Price | $ 3.40 | $ 3.40 | |
Class of Warrant or Right, Issued During Period | 750,000 | ||
Class of Warrant or Right, Warrant Term | 5 years | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5 | $ 5 | |
Class of Warrant or Right, Exercisable Threshold Period, from Date of Issuance | 180 days | ||
Warrants and Rights Outstanding | $ 791,290 | $ 791,290 | |
Class of Warrant or Right, Warrants Exercisable, Weighted Average Remaining Contractual Life | 5 years |
Note 11 - Black-Scholes Option
Note 11 - Black-Scholes Option Pricing Model Assumptions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Minimum [Member] | ||||
Risk-free interest rate | 1.10% | 1.10% | ||
Expected volatility | 80.00% | 78.00% | ||
Expected life (in years) | ||||
Expected dividend yield | ||||
Weighted average per share grant date fair value (in dollars per share) | ||||
Stock-based compensation | ||||
Maximum [Member] | ||||
Risk-free interest rate | 1.20% | 1.40% | ||
Expected volatility | 83.00% | 83.00% | ||
Expected life (in years) | ||||
Expected dividend yield | ||||
Weighted average per share grant date fair value (in dollars per share) | ||||
Stock-based compensation | ||||
Risk-free interest rate | 1.60% | 1.60% | ||
Expected volatility | 59.00% | 59.00% | ||
Expected life (in years) | 4 years 73 days | 4 years 36 days | 4 years 73 days | 4 years 36 days |
Expected dividend yield | ||||
Weighted average per share grant date fair value (in dollars per share) | $ 0.11 | $ 0.95 | $ 0.12 | $ 0.95 |
Stock-based compensation | $ 140,474 | $ 209,089 | $ 436,859 | $ 418,298 |
Note 11 - Option Transactions U
Note 11 - Option Transactions Under the Stock Option Plans (Details) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Outstanding (in shares) | shares | 217,002 |
Outstanding (in dollars per share) | $ / shares | $ 52.20 |
Granted (in shares) | shares | 112,750 |
Granted (in dollars per share) | $ / shares | $ 4 |
Exercised (in shares) | shares | |
Exercised (in dollars per share) | $ / shares | |
Cancelled /expired (in shares) | shares | 34,860 |
Cancelled /expired (in dollars per share) | $ / shares | $ 67.18 |
Outstanding (in shares) | shares | 294,892 |
Outstanding (in dollars per share) | $ / shares | $ 31.79 |
Exercisable as of June 30, 2016 (in shares) | shares | 189,456 |
Exercisable as of June 30, 2016 (in dollars per share) | $ / shares | $ 45.36 |
Note 11 - Grants Under Stock Op
Note 11 - Grants Under Stock Option Plans (Details) | 6 Months Ended |
Jun. 30, 2016shares | |
Consultant [Member] | |
Granted (in shares) | 11,000 |
Executive Officer [Member] | |
Granted (in shares) | 40,000 |
Employee [Member] | |
Granted (in shares) | 51,750 |
Non-employee [Member] | |
Granted (in shares) | 10,000 |
Granted (in shares) | 112,750 |
Note 11 - Summary of Warrant Ac
Note 11 - Summary of Warrant Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Outstanding , number (in shares) | 952,500 | 202,500 |
Outstanding, weighted average exercise price (in dollars per share) | $ 9.49 | $ 26.20 |
Granted, number (in shares) | 750,000 | |
Granted, weighted average exercise price (in dollars per share) | $ 5 | |
Exercisable, number (in shares) | 202,500 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 26.20 |
Note 12 - Employee Stock Purc53
Note 12 - Employee Stock Purchase Plan (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 15, 2016 | Apr. 14, 2016 | |
2010 Employee Stock Purchase Plan [Member] | ||||||
Percentage Of Discount Allowed For Shares Issued Under Employee Stock Purchase Plan | 15.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | 200,000 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 2,610 | 7,069 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 8,874 | $ 19,575 | ||||
Defined Contribution Plan, Cost Recognized | $ 1,152 | $ 1,167 | 2,936 | $ 3,115 | ||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 19,575 |
Note 14 - Net Loss Per Common54
Note 14 - Net Loss Per Common Share (Details Textual) - shares | Jun. 30, 2016 | Oct. 31, 2014 |
Melody Business Finance LLC [Member] | Secured Debt [Member] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3 | 180,000 |
Note 14 - Antidilutive Shares E
Note 14 - Antidilutive Shares Excluded from Computation of EPS (Details) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 294,892 | 185,602 |
Warrant [Member] | ||
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 952,500 | 142,500 |
Antidilutive Securities Excluded From Computation of Earnings Per Share, Amount (in shares) | 1,247,392 | 328,102 |
Note 15 - Commitments (Details
Note 15 - Commitments (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2016 | Dec. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2016 | Feb. 28, 2014 | |
Minimum [Member] | |||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year | ||||
Corporate Offices [Member] | |||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||||
Leasehold Improvements, Gross | $ 600,000 | ||||
Operating Lease, Leasehold Improvements to be Made by Lessor | $ 380,000 | ||||
Operating Lease, Annual Rent Two Years Ago | $ 359,750 | ||||
Annual Increase in Operating Lease Rent Expense | 3.00% | ||||
Operating Lease Annual Rent in Three Years | $ 416,970 | ||||
Sales Center [Member] | |||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | ||||
Annual Increase in Operating Lease Rent Expense | 3.00% | ||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years 60 days | ||||
Operating Lease, Annual Rent | $ 53,130 | ||||
Security Deposit Forfeited | $ 26,648 | ||||
Termination Payment of Lease | $ 25,000 |
Note 15 - Total Future Operatin
Note 15 - Total Future Operating Lease Obligations (Details) | Jun. 30, 2016USD ($) |
Remainder of 2016 | $ 7,450,265 |
2,017 | 8,829,245 |
2,018 | 4,389,155 |
2,019 | 2,721,992 |
2,020 | 623,067 |
Thereafter | 95,371 |
$ 24,109,095 |
Note 15 - Rent Expenses (Detail
Note 15 - Rent Expenses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Points of Presence [Member] | ||||
Lease and Rental Expense | $ 2,166,062 | $ 2,009,366 | $ 4,241,720 | $ 4,095,064 |
Corporate Offices [Member] | ||||
Lease and Rental Expense | 88,651 | 96,669 | 237,798 | 188,861 |
Other Leased Property [Member] | ||||
Lease and Rental Expense | 113,066 | 100,605 | 234,555 | 188,940 |
Lease and Rental Expense | $ 2,367,779 | $ 2,206,640 | $ 4,714,073 | $ 4,472,865 |
Note 15 - Total Future Capital
Note 15 - Total Future Capital Lease Obligations (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Remainder of 2016 | $ 550,567 | |
2,017 | 837,811 | |
2,018 | 143,796 | |
1,532,174 | ||
Less: interest expense | 98,591 | |
Total capital lease obligations | 1,433,583 | |
Current | 980,389 | $ 992,690 |
Long-term | $ 453,194 | $ 932,826 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) - USD ($) | Jul. 26, 2016 | Jul. 07, 2016 | Jul. 06, 2016 | Jun. 17, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jul. 05, 2016 | Dec. 31, 2015 |
Subsequent Event [Member] | Private Placement [Member] | ||||||||
Proceeds from Issuance or Sale of Equity | $ 1,250,000 | |||||||
Share Price | $ 1.40 | |||||||
Subsequent Event [Member] | Series B Convertible Preferred Stock [Member] | ||||||||
Conversion of Stock, Shares Converted | 446,429 | 1 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |||||||
Subsequent Event [Member] | Amended and Restated Warrants [Member] | ||||||||
Share Price | $ 7.60 | |||||||
Warrant, Conversion to Common Stock, Exercise Price | 3 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.80 | $ 5 | ||||||
Warrants, Exercisable, Threshold Consecutive Trading Days | 10 | |||||||
Warrants, Exercisable, Threshold Trading Days | 30 | |||||||
Beneficial Ownership Limitation, Percentage | 9.99% | |||||||
Subsequent Event [Member] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | |||||||
Common Stock, Pre-Reverse Stock Split, Conversion, Shares | 20 | |||||||
Private Placement, Securities, Units for Sale | 892,857 | |||||||
Private Placement [Member] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | |||||||
Proceeds from Issuance or Sale of Equity | $ 2,230,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||
Proceeds from Issuance or Sale of Equity | $ 2,230,000 | |||||||
Share Price | $ 3.40 | |||||||
Preferred Stock, Par or Stated Value Per Share | 0.001 | $ 0.001 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5 |